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Investment banker Peter J. Solomon says bankers that companies hire to run the sale process have tipped the auction process in favor of private-equity firms. Financial buyers edge strategic buyers because they bring the potential for greater fees to the banks. But recent turmoil in credit markets could reduce those fees and dampen private-equity's edge.

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Nearly three-quarters of pension-fund managers plan to increase their private-equity investments in the next three years, according to a Citigroup survey. Blackstone Group seems most likely to benefit, with 51% of pension-fund managers saying they plan to consider investments in the private-equity firm headed by Stephen Schwarzman.

Financing behind buyouts of Chrysler and Alliance Boots stumbled Wednesday, raising concerns that the "golden era" had reached its end. Banks offered higher interest rates in the two deals, but still failed to sell them to investors. "You're going to see more broken deals," billionaire investor Wilbur Ross said. "If the investment banks continue to get hung up, their appetite for risk is going to go down."

Rep. Rahm Emanuel, D-Ill., is emerging as the go-to guy for buyout firms seeking relief from a proposed tax increase in Congress. Emanuel hasn't said whether he will support legislation that would more than double tax rates on hedge funds and private-equity firms, but, like Sen. Charles Schumer, D-N.Y., he has indicated any increase should target a broader range of industries, including oil-and-gas, venture capital and real estate partnerships. "Either everybody's affected, or nobody's affected," Emanuel, the No. 4 House Democrat, said.

Issuers who postpone financing may be doing more harm than good, according to some market observers. Others are growing frustrated with private-equity firms that continue to announce deals even though the loan market has been "effectively closed." "This is further deferring the point at which the market clears," said one capital-markets source.

On Thursday, private-equity firm Blackstone Group made history by filing for an initial public offering, becoming the first major U.S. buyout fund to do so. Blackstone aims to raise $4 billion in public money. Top executives of the company, including co-founders Stephen Schwarzman and Pete Peterson, will reportedly receive hundreds of millions in special payments ahead of the IPO.